A New Agenda for Transatlantic Relations

Germany and the United States are close political and economic partners – despite any political tensions with the current Administration. Berlin and Washington must continue the dialogue. This applies not only to the bilateral relationship, it is also a fundamental precondition for cooperating within the WTO and engaging China on critical trade issues.

Eagle versus Dragon: Provisional Ceasefire between the United States and China

On the sidelines of the G20 summit in Buenos Aires, the United States and China reached a ceasefire on retaliatory trade measures. U.S. President Trump agreed to hold off on plans to raise tariffs from ten to 25 percent on 200 billion U.S. dollars in Chinese goods, which had been announced for January 2019. Within the next 90 days, further negotiations will take place to reach an agreement on several trade issues. If negotiations fail, German companies could significantly be impacted by a further escalation of the trade conflict.

The United States after the Midterms – The Future of U.S. Trade Policy

The Democratic Party has won the majority back in the House of Representatives. A Democratic upheaval, the so-called “blue wave“, did, however, not materialize. The Republicans were even able to build on their majority within the Senate. A change of course by U.S. President Trump is not in the cards. The United States will thus remain a difficult partner, in particular in trade.

U.S. Tariffs on Steel and Aluminum Imports: Recommendations of German Industry

President Trump has followed through with his threat: Since June 2018, steel and aluminum imports from the EU are subject to tariffs. Trump justifies these with national security claims. However, EU steel and aluminum do not threaten the national security of the United States. Breaches of WTO law should not be tolerated. The EU’s rebalancing measures are thus an important political signal. At the same time, tit-for-tat retaliation will harm everyone. Therefore, both sides must return to the negotiation table.

Trump’s Trade Agenda Will Continue to Pose a Threat to the Global Economy

The economy of the United States is booming. But with tariffs under the disguise of national security and the escalating U.S.-China trade conflict, President Trump’s trade policy poses both a threat to the U.S. as well as the global economy. The Democrats could gain the majority in the House of Representatives in the upcoming mid-term elections. But hopes that the United States will return to a more liberal trade policy are likely to be disappointed.

U.S. U-Turn Creates Uncertainty

When the Iran agreement was concluded in January 2016, hopes were high around the world – including in German industry. The U.S. withdrawal from the agreement inflicts economic damage and, moreover, raises questions about the credibility of the West in its aim to establish a regulatory framework for the globalized world.

‘American Cars First’ or Tentative Signs of a Détente?

After implementing tariffs on steel and aluminium in the name of national security, U.S. Secretary of Commerce Wilbur Ross initiated an investigation on automobiles in May 2018. Although tariffs for EU car imports seem to have been avoided for the time being after EU Commission President Juncker and President Trump reached their agreement, the threat of new tariffs puts the rule-based global trading system in danger.

Transatlantic Dialogue is More Important than Ever

BDI's President Dieter Kempf spoke about U.S. tariffs and whether a transatlantic trade agreement is still an option today. He stressed that the U.S. measures pose significant risks not only for the global economy and world trade but also for the U.S. economy. With regard to trade negotiations, Mr. Kempf pointed out that looking at tariffs alone gives little indication about the actual state of market access, adding that “a tariff-only treaty with the United States would fall short of the mark.”

U.S. Tax Reform Intensifies International Tax Competition

Washington has reduced the tax burden for companies, making the United States a more attractive location for investors. Germany must keep up with the competition for attracting business, says Monika Wünnemann, head of the department for tax policy at the BDI.

Transatlantic trade is growing and mutual investments continue to increase. But the political relationship between the EU and the United States is more tense than it has been for years. We spoke to Daniel Andrich, the Representative of Germany Industry and Trade (RGIT) in Washington, D.C., about the state of economic relations between Germany and the United States.

“America First” – U.S. Trade Policy under President Donald Trump

Almost no other country in the world has had such a strong influence on the multilateral trade system as has the United States. But with his “America First” policy, U.S. President Donald Trump is increasingly undermining international trade law. And that comes with huge costs not only for the United States’ trade partners but also for the United States itself.

Fair Trade or Protectionism? Trade Enforcement Measures Taken by the United States

That the United States – like many other countries – uses trade defence instruments to counter unfair competition is nothing new. But what is alarming right now is not only the rapid increase in the use of such instruments but also the justification for deploying them. This reflects the U.S. administration’s deep scepticism towards free trade and multilateral institutions.

Tit-for-Tat Protectionism Hurts Everybody

U.S. President Trump’s “America First” trade policy is not only a threat to the global economy and world trade. It also endangers U.S. competitiveness and jobs. Protectionism hurts the poorest most. If Trump wants to strengthen the industrial base in the United States, he should rather invest in education and infrastructure, Stormy-Annika Mildner, trade expert at BDI argues.

The Cornerstones of a Strong Transatlantic Economic Relationship

With the accession of Donald Trump to the Presidency, uncertainty is increasingly weighing on German businesses. Yet relations with the United States remain an important pillar of the German economy. German industry has identified 10 cornerstones that have high priority in ensuring the stability and sustainability of transatlantic economic relations.

Make America Great Again? The Impact of Donald Trump’s Election on the U.S. Economy

On 19 December the Electoral College officially confirmed Donald Trump as 45th president of the United States. On 20 January Trump will take the oath of office and officially move into the White House. As in every U.S. presidential election campaign, the economy was a central topic. Is the United States really doing as badly as Trump insisted during the election campaign? What plans does he have to boost the economy? And how likely is his programme going to succeed?

U.S. Trade Policy under Trump: Bad, Worse and Worst – Three Possible Scenarios

During the election campaign, Donald Trump caused a stir with his protectionist rhetoric. Which of his pronouncements will he actually translate into deeds? At least in theory, he could do much of what he said he would do.

Trump’s Success – An Attempt at an Explanation

In November 2016, Republican Donald Trump was elected as the 45th president of the United States of America. He won the election astonishingly clearly with 306 electoral votes to Hillary Clinton’s 232. Many were surprised by Trump’s victory. There are various explanations for his success.

Transatlantic Trade and Investment Partnership (TTIP)

News

Midterm Elections: U.S. Collision Course is Likely to Continue

11/07/2018
- The Trump administration's collision course remains a threat to the global economy. German industry doesn't expect the election results to change the current protectionist course of US trade policy, says BDI President Kempf. Instead of going it alone, the US should contribute to create modern trade...
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EU and US Must Apply the Emergency Brake in the Trade Dispute

07/23/2018
- In regards to the meeting between US President Donald Trump and EU Commission President Jean-Claude Juncker, BDI President Dieter Kempf urged: Tariffs imposed under the guise of national security should be removed. International trade disputes must be dealt with and resolved within the WTO...
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The EU has the international law on its side

06/01/2018
- The EU should react cool-headed to the protectionist trade policy of the Trump administration, says BDI President Dieter Kempf as a response to the US customs on aluminium and steel. “Make America Great Again“ does not work with protectionism.
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US Government is putting the World Trade System at risk by blocking the WTO

04/03/2018
- The BDI warns against a targeted weakening of the World Trade Organization. Washington is undermining international trade law. Challenges relating to global trade can only be resolved multilaterally.
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One year of Donald Trump and fears remain unallayed

01/17/2018
- German industry is still very concerned. The brunt of new trade barriers is felt not by China but by other trade partners such as Germany. The German government must respond to the sharper tax competition created by the US tax reform.
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“We urgently need a new government”

01/11/2018
- The BDI expects a GDP increase of 2.25 percent in 2018. 2018 must be a year of action, BDI President Dieter Kempf said. A future federal government will have to spend money in areas where there are increasing opportunities for growth, where jobs can be secured and new ones created.
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